MacPhersons Resources’ (ASX: MRP)
has completed drilling at the Nimbus-Boorara Project in Western
Australia, which confirmed the silver-zinc mineralisation remains open
at depth and along strike.

In addition, preliminary assays of up
to 4 metres at 354 grams per tonne silver have identified further
opportunities for near term production once the East Pit is completed.

These
have confirmed a new lens and two lens extensions within the current
mine model just 12 metres beneath the East Pit cutback.

“NBDH034
has intersected several silver-zinc mineralisation extensions which
confirms the system remains open at depth and along strike,” managing
director Morrie Goodz said.

“Preliminary assay results have been
received on three of these lenses and have confirmed a new lens and two
lens extensions within the current mine model, only 12m beneath the East
Pit cutback providing further opportunities for near term production
once the pit is completed.”

Bankable Feasibility Study
activities, including the now completed diamond drilling, continue on
schedule for the completion of BFS studies mid-2014.

Diamond Drilling

The
NBDH034 hole intersected at least six zones showing silver-zinc
sulphide mineralisation with assays on two of these zones confirming
three new silver lens extension adjacent to the East Pit cutback.

Suitable geotechnical and variability samples were intersected and have been collected.

The depth extension of silver-zinc mineralisation at Nimbus potentially offers long term underground mining opportunities.

Nimbus-Boorara Silver-Gold-Zinc Project

Nimbus
which is located just 10 kilometres east of Kalgoorlie’s superpit gold
mine, currently hosts an Ore Reserve of 1.126 million tonnes at 298
grams per tonne, or 10.8 million ounces silver equivalent, and a
Resource of 4.9 million tonnes at 149g/t, or 23.4 million ounces silver
equivalent.

This is calculated to a depth of just 260 metres
though the latest drilling that has further extended mineralisation at
depth could further increase resources.

Initial mine designs and
schedule support a 5.5 year mine plan with all in cash costs of ranging
between $12 per ounce to $16 per ounce silver and $600 per ounce to
$1050 per ounce gold.

Initial production in the second year is
expected to be between 2 million and 2.5 million ounces of silver as
well as 1,000 to 2,000 ounces of gold before ramping up to 3.5 million
to 4 million ounces of silver and 16,000 to 20,000 ounces of gold in the
third year.

Thanks to its location near the Super Pit, Nimbus
has existing infrastructure including electricity, gas, water and road
infrastructure.

Analysis

The
confirmation that silver-zinc mineralisation remains open at depth and
along strike at Nimbus-Boorara is value accretive for MacPhersons Resources.

Notably,
this offers further confidence for underground mining opportunities
that could substantially increase mine life at the project beyond the
existing planned open pits.

The recent drilling also brings to
light the likelihood for an upgrade to the current resource of 23.4
million ounces silver equivalent.

MacPhersons’ current market
cap. of circa $42 million clearly does not reflect its potential and we
expect the upcoming activity including further assays of the NBDH034
hole and the upcoming Bankable Feasibility Study to be key share price
catalysts.